Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1887-12-09
PRESIDENTS MESSAGE.
The Document Devoted TO a Discussion
Of the Surplus and the Tariff.
The Executive says the Problem II n
serious One, Demanding Immediate
AttcutiOn---Rnw Materials should be
Relieved Of Duty.

Attcution---Rnw Materials should be
Relieved Of Duty.
To the Congress NJ The rHiicd states:
You are confronted at the threshold Of your
legislative duties, with condition Of the national
finances which inpcrativyly demands immediate
and careful consideration The amount Of money
annually exact,d through the operation Of pres
ent laws from the industries and necessities Of the
people largely exceeds the sum necessary to meet
the expenses Of the government When we con
slider that the theory Of our institutions guatan-
tees 10 every citizen the full enjoyment of all the
fruits Of his industry and enterprise with only
such deduction as may br his snare towards tine
careful aud economical maintenance Of the gov
ernment which protects him, It is plain that the
eNaction Of more than this Is indefeusble eXtor
ton and culpahc betrayal Of American fairness
and Justice. This wrong inflicted upon those who
bear the burden Of national taxation, like other
wrongs, nuluplies a brood Of evil consequences
The public treasury, which should only exist as a
conduit conveying the peoples tribute to its legt
innate objects Of expenditure, becomes a hoard
ing place for money needlessly withdrawn from
trnde and the peoples use, thus Gripping our ma.
tlonal energies susp 'nding our countrys devel-
upntnt preventing Investment In productive EN-
tcrprsc, threatening financial disturbance and in
viting schemes Of public plumber. This condition
Of our treasury is not altogether new, and 1t has
more than once Of late been submitted to the PEG.
pies representatives In the Congress- who alon,.
can apply a remedy, and yet the situation
still continues with aggravated Incidents
more than ever presaging financial cOnvulson
and widespread disaster. II will not do to neglect
this situation because its dangers are not pal
pably imminent and apparent. They exist none
the less certainly, and await the Unforeseen and
unexpected occasion when suddenly they will be-
preCipitated upon us.
ON the 3Oth day Of June, 1885, the excess of rev
enue over public expenditures, after complying
with the annual requirement Of the sinking fund
act, was Sli ,sjg1&N During the year ending
Ittttn ett,sl ,Vslf Ia
5ij -, aud during the year ending June 80, 1880,
il reached the sum Of Sjj,jGT, st05I
The annual contributions to the sinking fund
during the three years above specified, amount
ing IN the aggregate to Sl3S, 05S 1904, aud de
Quoted from the surplus as stated, were made 10y
calling in Tor that purpose, outstanding three per
cent bonds Of the government During the six
months prior 10 June 30 1857. the surplus revenue
had grown 50 large by repeated accumulatunS,
and IL was feared the withdrawal of this great
sum, money needed by the people, would So affect
the business Of the country that the sum Of S79,
SIT lo OF Such surplus was applied To the pay
m'nt OF the principal and interest of three per
cent bonds still outstanding and which were then
! payable mt the option Of the government The
pIccarious condition of financial affairs among
the people still needing relief. Immediately after
| tn" 3Oth day OF June, 1857, the remainder Of the
| thr'" per cent bonds then outstanding, amount
Ing with principal and interest. to the sum of SIS,
! $1,000 were called in and applied 10 the sinking
| fund contribution for the current fiscal year
| notwithstanding the operations Of the treasury
| department representations of distress in bust
ness circles not only continued but increased. aud
| absolute peril seemed at hand In these circun-
! stances the contribution to the sinking fund for
| the current fiscal year was at once completed by
the expenditure of ~, bSi, 2S}jji in the purchase
| Of government bonds not vet due bearing I and
| ~ per cent interest, the premium thereon aver
| aging about p per cent for the former and pei
| cent for the latter Ia addition to this the inter
est accrling during the current year upon the out
| standing bonded Indebtedness Of the government
| was, to some extent anticipated, and banks Sc
| lected as repositories OF public money were per
| mttcd to somewhat increase their deposits.
| While the eXpedientS thus employed to releast
to the people the money lying idle in the treasury
| served to avert immediate danger our surplus rev
| enurS have continued to accumulate, the excess
| for the present year amounting ON the first day
| of December to lj.2jS, iOt 10 and estimated t.
! reach the sum of Sl13,OOOOOO ON the 30th Of JUNE
| next, at which date 1t is expected that this sun
| added to prior Accommodations will swell the sur
| plus IN the treasury to SllO,ODOOOO. There Seems
to be- no assurance that with such Withdrawal
from use of the peoples circuatve medium ou
business community may not IN the near luturi
be subjected to the same distress which was quit,
lately produced from the same cause, and whit
the functions of our national treasury should b.
few and sinplr and while its best condition Toul,
be reached, | believe by the entire disconectioi
with private business interests, yet when, by
pcrversiun of its purposes It idly holds none!
uselessly subtructed from the channels of trade
there seems to be reason for the claim that SOM
legitimate means should be- devised by the gov
erunrnt to restore, IN an emergency, withOu
waste or extravaganza, such money to its plac
among the people. If such an3emergency arise,
| there now exists no clear and unduuhtcd eXrcu
| .
of three per cent bonds which We're payable a
the option of the government has afforded
means for the disbursement OF the excess of OH
revenues, but these bonds have all been retire
and there are no bonds outstanding the paymen
OF which we have the right to insist upon. Tn
| contribution to the sinking fund which furnlshe
the occasion for expenditure in the purchase c
bonds has been already made for the currtI
year, 50 that there is no outlet In that direction.
In the present state of legislation the only pr,
tenct of any existing executive power to rrStUr,
AZ TINS time, any part OF our surplus revenue
the people by its expenditure consists in the SUI
position that the secretary of the treasury ma
enter the market and purchase the bonds Of III
. government not yet due at a rate of premium
be agreed upon. The only provision of Law frui
from which such power could be derived
found in an appropriation hill passed number
years ago, and it is subject to the suspicion thu
il was intended as temporary and liuited IN Il
application Instead Of comforting IA continuing di
, erection and authority No condition ought to e
J list which would justify the grant Of power to
single official upon hs Judgment of its nccessit
to withhold from or reils. to the business of a
people in an unusual manner money held in Il
treasury and thus affect at his will the finauci
situation OF the country, and if it is deemed vii
= | to lodge In the secretary Of the treasury the a
! thurity in the present iuncture to purchase bond
i | il should be plainly vested and provided as far
" possible with such checks and limitations as VI
drlnc this officials right and discretion. and
r | the same time relieve him from undue rt,spou,
,. blity.
IA considering the question of purchasing bon,
= as "a means Of restoring To circulation the surpli
= money in the treasury il should b. borne in nil
i. that premiums must of course be paid upon su,
purchases that there may be. a large part of the
. bonds held as Investment which cannot be pu
chased AT any price and hat combinations alnor
Il holder, who arr. willing to sell may tureasonab
enhance. the cost of such bonds to the cover
Is nent II has been suggested that the prese
bonded debt might be- refunded at a less rate
Il interest aud the difference. between the old al
new security paid in cash thus finding use for ii
e surplus In the treasury The success Of This ula
il Is aInar,ut must dep-nd upDn the vOliti6n
th,. holders of thr present bonds and il is moi e.
tirry certain that the nducemrut which must
H offered them would result in more financial bn
fit to the Government than TN. purchase. of bond
;, Will. the latter prouusiti0n yould reduce nj
principal of the debt by actual payment instei